LEVEL OF SATISFACTION OF CDLSHS ABM STUDENTS

ON LAZADA AND SHOPEE ONLINE TRANSACTIONS

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

The Internet has played an important role in people's daily

lives, such as sending messages, other forms of communication,

acquiring information, and playing games. The Internet has also

introduced the simplicity of doing online shopping with features

such as viewing product details, price evaluation and comparison,

quality analysis, picking the service type, and processing payment

(Katawetawaraks & Dan Wang, 2011).

Online shopping is a form of electronic commerce which

allows consumers to directly buy goods or services from a seller over

the Internet using a web browser or a mobile app. Online shopping

provides customers with more information and options regarding

items and price comparisons, as well as ease and simplicity in

discovering anything online. It has also been shown to provide more

satisfaction to modern customers in terms of convenience and time

savings (Butler & Dan Peppard, 1998; Li & Dan Zhang, 2002).

Customers can find a product of interest by going to the retailer's

website directly or by utilizing a shopping search engine to look up

alternative sellers. Shopping search engines show the availability

and price of the same goods at several e-retailers. Customers can

shop online using a range of different computers and devices,

including desktop computers, laptops, tablet computers and

smartphones.

Online stores usually allow customers to use "search" features

to discover or find certain models, brands, or goods. To complete

an online transaction, users must have Internet connection and a

legitimate mode of payment, such as a credit card, or a service like

PayPal. The e-tailer ships physical products (such as paperback

books or clothing) to the consumer; for digital products, such as

digital audio files of music or software, the e-tailer typically transmits

the file to the customer through the Internet.

In the Philippines, there are two (2) prominent online

shopping platforms that consumers frequently use: Shopee and

Lazada. These platforms let the seller and consumer to

communicate about customer concerns, reviews, complaints,

requests, and other inquiries. The seller might acquire the buyer's

trust through these reviews and feedback, resulting to increased

transactions.
 Some students may find it more convenient to purchase

items on Shopee and Lazada. Many students nowadays love

shopping, and they frequently look for ways to make things easier

and shopping more convenient for them. Many students are too

busy with schoolwork and don't have time to go for shopping, so

they find online shopping more convenient, especially since the

pandemic has hit our country. Purchasing items through these

online platforms may also allow students to save money. The

majority of the things offered on Shopee and Lazada are less

expensive than those sold in physical stores. To conclude, this study

should be able to determine the level of satisfaction that grade 12

students in CDLSHS get in purchasing items using Shopee and

Lazada.

Background of the Study

Shopee and Lazada are the most popular online shopping

applications. This is the popular app that most people use

nowadays to buy products nationwide. These applications are

mostly used during pandemics, since we are not allowed to go

outside. Some people buy their needs and wants online. Since the

online shop has become more popular during the pandemic, a lot

of people that have problems with their past businesses or people

that need income have started to open an online store or do some

live selling on these given shop apps. So, except for the

entertainment purposes of these apps, they also give an

opportunity to the jobless.

The number of consumers buying online and the amount of

time people spend online has risen (Monsuwe et al., 2004). It has

become more popular among customers to buy online, as it is

handier and time-saving (Huseynov and Yildirim, 2016; Mittal, 2013).

Convenience, fun and quickness are the prominent factors that

have increased the consumer’s interest in online shopping (Lennon

et al., 2008). Moreover, busy lifestyles and long working hours also

make online shopping a convenient and time-saving solution over

traditional shopping. Consumers have the comfort of shopping from

home, reduced traveling time and cost and easy payment (Akroush

and Al-Debei, 2015). Furthermore, price comparisons can be easily

done while shopping through online mode (Aziz and Wahid, 2018;

Martin et al., 2015). According to another study, the main

influencing factors for online shopping are availability, low prices,

promotions, comparisons, customer service, user friendly, time and

variety to choose from (Jadhav and Khanna, 2016). Moreover,

website design and features also encourage shoppers to shop on a

particular website that excite them to make the purchase.

 Most consumers will buy products through an online shop

when the sellers can provide satisfaction in accordance with what is

offered. The prices they offer are quite competitive, as is the quality

of service provided to the consumers. Satisfaction is meant here to

be satisfaction with the quality of the product purchased at

competitive with prices offered by other sellers; distribution and

delivery of products on time; always offering a product; consumers

are in touch with sellers; and there is a guarantee that the goods will

be returned if they do not match what was ordered. These are the

factors that will generally make customers feel satisfied when

purchasing products from the online shop. Customers also see

empathy in business services. Empathy is a skill that helps employees

build good relationships with their customers. It would also help the

business know the customer's demands. In line with this, empathy is

also relevant to customer service experience, which helps to gain a

number of satisfied customers as well as customer trust and loyalty

towards the store (Simons, 2017). Furthermore, empathy makes it

possible to understand other people's perceptions and opinions. It is

important for a business to be aware if their service is meeting the

customers' needs and wants as well as their positive and negative

feelings. Empathy is sharing what a person thinks or how a person

thinks about something, and it is necessary for a company to know

these. Customers also have the right to know the business's

"background and information" (Singer, 2014).

There are factors affecting customer satisfaction caused by

the operation of the business. One of these factors is the quality of

the product. To solve this problem, customers using the application

to buy the product should visit the main account of the seller and

check its information as well as the product to purchase,

considering the reviews of the store and the items. The price of the

product is another problem. There are instances when products are

poor quality and have a high price. Customers overcome this

problem by securing that the products/items they sell give justice to

their price and have a lot of positive feedback. The services of a

business also cause problems when a customer buys from the seller's

account. The slow response time can make the customer feel less

important. Since communicating online is the only way to connect

with the seller and vice-versa. To resolve this challenge, the seller

must implement customer service software and use message auto-

responders to communicate with customers across specific

scenarios and keep information transparent. It helps customers

understand what is actually happening—whether your sellers are

busy, out of the office, or on vacation.

 Despite so many advantages, some customers may feel

online shopping risky and not trustworthy. The research proposed

that there is a strong relationship between trust and loyalty, and

most often, customers trust brands far more than a retailer selling

that brand (Bilgihan, 2016; Chaturvedi et al., 2016). In the case of

online shopping, there is no face-to-face interaction between seller

and buyer, which makes it non-socialize, and the buyer is sometimes

unable to develop the trust (George et al., 2015). Trust in the e-

commerce retailer is crucial to convert potential customer to actual

customer. However, the internet provides unlimited products and

services, but along with those unlimited services, there is perceived

risk in digital shopping such as mobile application shopping,

catalogue or mail order (Tsiakis, 2012; Forsythe et al., 2006; Aziz and

Wahid, 2018).

The topic is all about consumer satisfaction. This study aims to

identify and analyze the key determinants influencing consumer

satisfaction. Consumer satisfaction is a measurement that

determines how well a company's product or services meet

consumers' expectations. It is one of the most important indicators

of purchase intentions and consumer loyalty and helps predict

business growth and revenue. Consumer satisfaction is the defining

component of any business because it provides marketers and

business owners with a metric to measure and improve business

performance from a consumer standpoint. The benefits of consumer

satisfaction are a vital component of any business because it

increases productivity and profitability by evaluating product and

service expectations, level of trust, and loyalty to the business

owner. The consumer satisfaction survey gathered detailed

information about the positive and negative which may boost

marketing strategies. They also spread the word as an informal

referral method by recommending products. We also

acknowledged, through evaluation and finding, the improvement

in consumers' expectations of the quality of the product and

consumers' experience.

This study will show the factors that affect the level of

satisfaction of a customer. This would be a great help to the online

sellers of the said application. The results of this study would provide

them with data that may affect their online business so that they

could improve their services for their buyers.

Statement of the Problem

This research aims to find out the Level of Satisfaction of CLDSHS

ABM students on Lazada and Shopee Online Transactions.

Specifically, it sought to answer the following questions:

1. Relationship between Lazada and Shopee?

1.1 Its purpose

2. How do Lazada and Shopee function as online shopping

apps?

2.1 Factors that encourage students to shop on Lazada

and Shopee

3. Quantity of Lazada and Shopee users?

3.1 Age:

3.2 Gender:

3.3 Allowance

4. Is there any reason for one’s dissatisfaction?

4.1 False or misleading sellers

4.2 Damaged parcels

4.3 Delivery Failure

Scope and Delimitations of the Study

This study entitled “Level of Satisfaction of CDLSHS ABM Students

on Lazada and Shopee Online Transactions” focuses on discovering

CDLSHS ABM Students' satisfaction with using Lazada and Shopee to

purchase products online, what benefits they gain from this

purchasing strategy, and how convenient it is for them to use these

apps to shop online.

This research will be conducted at Crecencia Drusila Lopez

Senior High School, a DepEd managed public school and was first

called "Stand Alone" in Laguna. This school comprises Senior High

School and offers two tracks, which are Academic and Technical

Vocational Tracks. Under the Academic Track are Accountancy,

Business, and Management (ABM), Science, Technology,

Engineering, and Mathematics (STEM), and Humanities and Social

Sciences (HUMSS). It is located at DLMP Compound Brgy. San

Roque, San Pablo City, Laguna (Latitude: 14°04'16.0"N, Longitude:

121°18'44.5"E).

Selected grade 11 and 12 CDLSHS Students will serve as the

respondents. The researchers will use purposive sampling in

identifying the samples. Preceding to that the researchers estimated

the sample size using a website called Check Market - sample size

calculator powered by Medallia.

A course of two semesters will be used to finish the study. It was

started September 2022 and is projected to be completed by June

2023.
 This study is exclusively conducted on CDLSHS ABM students

because they are the ones whose opinions and pleasure with their

purchases on Lazada and Shopee are crucial and prioritized.

Accordingly, the perceptions and experiences of CDLSHS students

from different strands regarding making purchases through the

Lazada and Shopee applications were not probed.

Although the researchers of this study aimed to gather data as

precisely as possible, they cannot be completely certain that the

data is 100% valid because the information that could be collected

rests only on the respondents' assertions, and the respondents'

perspectives on the topic varied.

Significance of the Study

This research entitled “Level of Satisfaction of CDLSHS ABM

Students on Lazada and Shopee Online Transactions” is deemed

significant to the following sectors of society.

CDLSHS ABM Students. Students may be benefited by making

wise transactions online (Lazada, Shopee) instilling in them the value

of intelligence with regards to purchasing so that money spent will

not put to waste.

CDLSHS Student Entrepreneurs. They would be exposed to the

actual business scenario which will provide them real-life business

experiences that would enhance the ways they perform their

business.

Consumers. They could be guided on what to purchase and

what they should not purchase. They will be educated customers as

a result of this study.

Sellers. Through feedback and reviews, sellers will learn what

their customers truly prefer. They may utilize the findings of this study

as a business guide/plan in which they can use as improvement.

Future Researchers. This study will serve as a great source of

related research to the current studies on this topic that they may

be conducting.